Snow Birds May Have Trouble Avoiding Taxes

Like a snow bird, some well-off northeastresidents may decide to leave the inclement winter weather of the northeast andhead south, returning to their true home in the spring.  But these northeast residents have an uphillbattle in convincing a high tax state like New York that they have made a cleanbreak and are now the resident of a state tax haven like Florida.

New York can tax those with a New Yorkdomicile.  Your domicile is “the placewhere the family pictures are.”  Once adomicile is established, it will continue until the individual moves with thebona fide intention of making the new place their fixed and permanenthome.  Any person asserting a change ofdomicile must show the necessary intention exists, which may include showing “a rangeof sentiment, feeling and permanent association established with” the new home.

Even if an individual were to establish aFlorida domicile, New York, and other states like Massachusetts, have adoptedthe “New York rule,” which allows New York to tax an individual as a “statutoryresident” if the individual has a place in New York and is in New York morethan 183 days.  For those cutting itclose to 183, it may be a good idea to keep a good log of their whereabouts.

SeePeter J. Reilly, Hard for Snow Birds toAvoid New York Tax, Forbes, July 29, 2013.